Question 1.

1. What is supply chain management (SCM)?

Multiple Choice

A. The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitabilit

B. Takes information entered into a given system and sends it automatically to all downstream systems and processes

C. A means of managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability

D. Connects the plans, methods, and tools aimed at integrating separate enterprise system

2. What is enterprise resource planning (ERP)?

Multiple Choice

A. The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

B. Integration of all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprise-wide information about all business operations

C. A means of managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability

D. Connection of the plans, methods, and tools aimed at integrating separate enterprise system

3. What is customer relationship management (CRM)?

Multiple Choice

A. The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability

B. Integration of all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so employees can make decisions by viewing enterprise-wide information about all business operations

C. A means of managing all aspects of a customer's relationship with an organization to increase customer loyalty and retention and an organization's profitability

D. Connection of the plans, methods, and tools aimed at integrating separate enterprise system

4. What is the analysis and redesign of workflow within and between enterprises?

Multiple Choice

A. Supply chain management

B. Customer relationship management

C. Business process reengineering

D. Enterprise resource planning

5. Which of the below represents business processes you would find in the human resources department?

Multiple Choice

A. Hiring employees

B. Enrolling employees in health care

C. Tracking vacation and sick time

D. All of the choices are correct.

Part ii.

1). The market demand function for a good is given by Q = D(p) = 800 ? 50p. For each firm that produces the good the total cost function is TC(Q) = 4Q+( Q2/2) . Recall that this means that the marginal cost is MC(Q) = 4 + Q. Assume that firms are price takers.

(a) What is the efficient scale of production and the minimum of average cost for each firm?

Hint: Graph the average cost curve first.

(b) What is the supply function of each firm?

(c) If there are currently 100 firms producing the good, what is the market supply function? What is the short-run competitive equilibrium in this market with 100 firms? What is the profit of each firm?

(d) What is the long-run competitive equilibrium price and quantity in this market?

2). Consider the market of the previous question in the short run (with 100 firms), and assume that the government imposes a tax of $3 per unit.

(a) What would be the new equilibrium quantity supplied after the tax is imposed?

(b) What would be the price consumers pay and the price sellers receive with the tax? Explain how the burden of the tax is shared between consumers and producers.

(c) Compute consumer and producer surplus before and after the tax. How much government revenue is generated by the tax? How large is the deadweight loss?

(d) What would be the long-run equilibrium quantity in this market with the tax? What are the prices that consumers pay and sellers receive? Compare this to the long-run equilibrium without the tax and determine how much of the burden of the tax is borne by consumers and producers.

B. How does the demand curve a perfect competitor faces different from the one a monopolist faces? Relate this to the market demand curve. The demand curve for a perfectly competitive firm is horizontal as it is a price taker and can sell any amount of goods at that price. The demand curve for a monopolist is downward sloping as it can sell more units only by lowering the price of the good. II. Read Economics for Life Lesson #45, p 76-77 and answer the following. Will a monopolists charge the highest price they can get? Why or why not. 2. Can a monopoly be good for some sorts of efficiency? Why or why not